2017/18 Pre Budget Submission: A Submission on Behalf of Australia’s Health and Medical Research Sector

This pre-budget submission sets out Research Australia’s priorities for the 2017–18 Budget on behalf of the health and medical research sector. It recommends the measures in the National Innovation and Science Agenda (NISA) to be fully funded on the timeline announced in December 2015, and for the Government to keep the Medical Research Future Fund (MRFF) on track to reach its $20 billion capital target by 2020–21, noting that contributions in 2016–17 were running about $124 million behind forecast. Citing a return of $2.17 in health benefits for every dollar invested in health research and development, and polling showing 87% public support for the MRFF, it maintains that funding for National Health and Medical Research Council (NHMRC) and Australian Research Council (ARC) programs should be increased, or at least maintained in real terms, given success rates of 15.2% and 17.8%. On indirect research costs, it shows that the ratio of block grant funding to competitive grant income could fall from 34.6% to 19.2% as the MRFF ramps up, and recommends treating MRFF grants as Category 1 income, adding an MRFF stream to the Independent Research Institute Infrastructure Support Scheme (IRIISS) and a Chief Scientist-led review of indirect cost funding. It opposes the proposed $2 million cap on the refundable R&D Tax Offset, citing a survey in which 77% of 32 medical technology companies would do less R&D, recommends adopting the Australian Innovation and Manufacturing (AIM) Incentive, and recommends investment in Commonwealth agencies’ capacity to link and release deidentified data.